In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1913)

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Circulars to Rental Exchanges. 67 changes and the Manufacturers and this Company are governed by the terms of the license agreement between the Exchanges and this Company. Exchanges that comply with the conditions of the license agreement will continue to have our co-operation and we will promptly terminate our relations with such Exchanges as violate the terms of their license or otherwise show that they do not consider their interests and ours as being mutual. On and after Monday, May 3, 1909, include in each of your bills for weekly service to exhibitors, an item of $2 for exhibitor's royalty in advance for the current week. Each Exchange shall forward to this Company, on Tuesday of each week, the royalty for that week of every exhibitor that is receiving service from the Exchange. Send with the remittance of May 4th, the names and locations of the theatres for which royalties are forwarded, and send with your remittance on each succeeding Tuesday a list showing the names and locations of new customers, and the names and locations of theatres that have discontinued your service. This Company will promptly mail to exhibitors receipts for the royalties that are forwarded by Exchanges. The following conditions relating to theatres not licensed will govern applications from such theatres for licensed service: (a) If motion pictures have been shown in a theatre within five months, the Exchange may send to the Patents Company an application for a license for the theatre, and $2 to cover the royalty for one week. The Exchange may supply service as soon as the royalty and application for license are mailed. If the Patents Company refuses to grant the license, the Exchange will be notified by the Patents Company to discontinue service. (b) If motion pictures have not been shown in the theatre within five months, the application, without any fee, should be mailed to the Patents Company, but service shall not be supplied unless the